Osadchiy discusses research on buying decisions, markdown strategy

According to operations research, retailers can increase market size and revenues by better understanding the factors that go into a buyer’s decision-making process.

Nikolay Osadchiy, assistant professor of information systems and operations management at Goizueta Business School, says the decision to purchase an item at regular price or wait for a possible markdown involves a multi-step mental process. Consumers weigh factors such as the value of the item, the delay in getting the item, the likelihood of being able to purchase the item, and the magnitude of the price discount.